Like any other lender the Department of Veterans’ Affairs expects the home buyers to whom it extends mortgages to make their monthly payments in a timely fashion until the mortgage is paid in full. But, like other lenders, the VA is faced with borrowers who default on their repayments for various reasons. And the VA will act to recover its funds from defaulting borrowers, through the process of government foreclosures.

government foreclosures are available for purchase to anyone, even those who are not veterans. The VA, in fact, is eager to sell its foreclosure listings so that it can avoid having to pay taxes, insurance, and maintenance costs on them. So they will offer very favorable financing incentive and interest rates to potential purchasers.

If you are willing to overlook an unattractive, run-down property, because the previous owner was unable to afford the house, and the maintenance effort to keep it in prime condition, then a foreclosed VA home could be ideal. These homes are often in the lower price ranges and can be a bargain, particularly if you invest the time and money to renovate it for a future sale.

One has to be careful about these ugly government foreclosures and should carry out proper due diligence. I would not like to purchase properties having major structural problems and would stay away from such properties. This is due to the fact that the repair cost of structurally unsound property is prohibitively high and these may go out of hand. However in case of disgusting bathroom or flooded basement one can easily fix them if you are knowledgeable about this business. Very few people will be interested in such property and this means that you can buy it very cheaply.

A VA foreclosure is typically perfect for real estate investing and those wanting to purchase a home at less than its market value. To find foreclosure listings, you can visit a realtor as most VA foreclosures are listed on the local Multiple Listing Service by local real estate agents. You could also perform an internet search on “VA foreclosure listings” and the zip of your target area.

In order to get great bargain properties when real estate investing, one must see the VA foreclosures, which are just one source of government foreclosures. Other sources of foreclosure properties other than government foreclosures are bank foreclosures, bank owned real estate, pre-foreclosures and foreclosure auctions.

Mortgages made by the Department of Veteran’s Affairs are arranged with regular payments due until the mortgage is paid off in full. Recovery of the loan is carried out by foreclosure. To get great bargain properties, one must see the government foreclosures, including those from the VA. VA foreclosures are homes that can often be purchased for less than its value. Such foreclosure properties are available from a variety of sources, such as the Multiple Listing Service provided by realtors as well as an internet search, but be sure to narrow down the search results by the zip code(s) of your area of interest.

- David E. Williams

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